Tidewater (TDW) 8-K Tidewater Reports Fourth Quarter Results and Year End Earnings For Fiscal 2006

Exhibit 99.1

Tidewater Reports Fourth Quarter Results and Year End Earnings For Fiscal 2006

HOUSTON, TX, May 3, 2006 — Tidewater Inc. (NYSE:TDW) announced today fourth quarter net earnings for the period ended March 31, 2006, of $64.7 million, or $1.11 per share, on revenues of $246.5 million. For the same quarter last year, net earnings were $52.4 million, or $.91 per share, on revenues of $179.6 million. For fiscal year ended March 31, 2006, net earnings were $235.8 million, or $4.07 per share, on revenues of $877.6 million. For the fiscal year ended March 31, 2005, net earnings were $101.3 million, or $1.78 per share, on revenues of $692.2 million.

Included in the year ended March 31, 2006, results is an after-tax gain of $42.8 million, or $.74 per common share, related to the July 2005, sale of six of its KMAR 404 class of Anchor Handling Towing Supply vessels to Deep Sea Supply ASA for a total cash price of $188 million.

Included in both the fourth quarter and year ended March 31, 2005 results is a non-cash tax benefit of $31.8 million ($.55 per share) resulting from the positive tax impact from the American Jobs Creation Act of 2004. Effective March 31, 2005, the Company reversed all previously recorded deferred tax assets and liabilities related to timing differences, foreign tax credits or prior undistributed earnings of company entities whose future and prior earnings are now anticipated to be indefinitely reinvested abroad.

As previously announced, Tidewater will hold a conference call to discuss March quarterly and annual earnings on Wednesday, May 3, 2006 at 9:00 a.m. CDST promptly following the Company’s release of quarterly and annual earnings. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-388-7493 if calling from the U.S. or Canada (1-706-679-8348 if calling from outside the U.S.) and ask for the “Tidewater Inc.” call just prior to the scheduled start. A replay of the conference call will be available beginning at 11:00 a.m. CDST on May 4, 2006, and will continue until 11:59 p.m. CDST on May 4, 2006. To hear the replay, call 1-800-642-1687 (1-706-645-9291 if calling from outside the U.S.). The conference call ID number is 8050361.

A simultaneous Webcast of the conference call will be accessible online at the Tidewater Inc. Website,www.tdw.com, and at the CCBN Website,www.streetevents.com. The online replay will be available until June 4, 2006.

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Tidewater Inc. owns over 520 vessels, the world’s largest fleet of vessels serving the global offshore energy industry.

Note: all per-share amounts are stated on a diluted basis.

Contact: Joseph Bennett

(713) 470-5300

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TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Quarter Ended March 31,					Year Ended March 31,
	2006			2005		2006		2005
Revenues:
Vessel revenues	$	235,274		174,450		846,982		655,526
Other marine revenues		11,266		5,163		30,635		36,624
		246,540		179,613		877,617		692,150
Costs and expenses:
Vessel operating costs		115,852		103,221		431,481		401,871
Costs of other marine revenues		9,086		3,539		23,836		29,453
Depreciation and amortization		27,683		25,677		107,526		99,613
General and administrative		24,943		19,379		86,490		73,424
Impairment of long-lived assets		—		1,733		3,050		1,733
Gains on asset sales		(10,875	)	(1,462	)	(86,337	)	(11,979	)
Total operating expense		166,689		152,087		566,046		594,115
		79,851		27,526		311,571		98,035
Other income (expenses):
Foreign exchange gain (loss)		(120	)	(132	)	1,035		(327	)
Equity in net earnings of unconsolidated companies		2,925		1,798		10,035		6,299
Minority interests		(43	)	(36	)	(16	)	(59	)
Interest and miscellaneous income		4,715		847		9,961		2,734
Interest and other debt costs		(2,444	)	(2,183	)	(9,074	)	(6,887	)
		5,033		294		11,941		1,760
Earnings before income taxes		84,884		27,820		323,512		99,795
Income tax expense (benefit)		20,202		(24,576	)	87,756		(1,544	)
Net earnings	$	64,682		52,396		235,756		101,339
Earnings per common share	$	1.12		0.92		4.11		1.78
Diluted earnings per common share	$	1.11		0.91		4.07		1.78
Weighted average common shares outstanding		57,636,164		57,002,733		57,372,815		56,854,282
Incremental common shares from stock options		782,901		418,592		593,856		213,992
Adjusted weighted average common shares		58,419,065		57,421,325		57,966,671		57,068,274
Cash dividends declared per common share	$	.15		.15		.60		.60

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TIDEWATER INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

	March 31, 2006		March 31, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	246,109	15,376
Trade and other receivables less allowance for doubtful accounts of $6,265 in 2006 and $7,138 in 2005		237,428	169,784
Marine operating supplies		41,181	38,959
Other current assets		4,325	3,837
Total current assets		529,043	227,956
Investments in, at equity, and advances to unconsolidated companies		34,308	32,074
Properties and equipment:
Vessels and related equipment		2,457,947	2,483,970
Other properties and equipment		50,205	48,512
		2,508,152	2,532,482
Less accumulated depreciation and amortization		1,134,425	1,080,296
Net properties and equipment		1,373,727	1,452,186
Goodwill		328,754	328,754
Other assets		98,708	172,203
Total assets	$	2,364,540	2,213,173
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		97,265	82,261
Accrued property and liability losses		7,223	9,286
Other current liabilities		11,266	2,766
Total current liabilities		115,754	94,313
Long-term debt		300,000	380,000
Deferred income taxes		175,267	184,410
Accrued property and liability losses		21,732	34,778
Other liabilities and deferred credits		92,666	76,970
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, and 60,310,164 shares at March 2006		6,031	6,072
Other stockholders’ equity		1,653,090	1,436,630
Total stockholders’ equity		1,659,121	1,442,702
Total liabilities and stockholders’ equity	$	2,364,540	2,213,173

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Further details of the Company’s vessel revenues and vessel operating costs for the quarters and years ended March 31, 2006 and 2005 are as follows:

(In thousands)

	Quarter Ended March 31,			Year Ended March 31,
	2006		2005	2006	2005
Vessel revenues:
Domestic	$	53,664	30,947	180,374	118,288
International		181,610	143,503	666,608	537,238
Total vessel revenues		235,274	174,450	846,982	655,526
Vessel operating costs:
Crew costs		62,252	58,104	243,584	226,653
Repair and maintenance		22,659	15,553	76,058	70,519
Insurance and loss reserves		4,624	5,302	15,820	18,568
Fuel, lube and supplies		10,770	11,076	39,617	40,329
Other		15,547	13,186	56,402	45,802
Total vessel operating cost		115,852	103,221	431,481	401,871
Vessel operating margin	$	119,422	71,229	415,501	253,655
Vessel operating margin as a % of revenue	%	50.8	40.8	49.1	38.7

Further details of the Company’s vessel operating profit for the quarters and years ended March 31, 2006 and 2005 are as follows:

(In thousands)

	Quarter Ended March 31,			Year Ended March 31,
	2006		2005	2006	2005
Vessel operating profit – United States	$	21,253	2,594	61,227	2,022
Vessel operating profit – International	$	53,209	28,282	186,044	95,383

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The Company’s actual vessel count by vessel class at March 31, 2006 and vessel utilization percentages and average dayrates by vessel class for the quarter and year ended March 31, 2006 were as follows:

UTILIZATION

Fiscal Year 2005	Actual Vessel Count at March 31, 2006		Quarter Ended March 31, 2006			Year Ended March 31, 2006
Domestic-based fleet:
Deepwater vessels	7			99.7	%		99.2	%
Towing-supply/supply	50			62.0	%		61.8	%
Crew/utility	14			86.6	%		85.5	%
Offshore tugs	13			30.8	%		28.9	%
Total	84			64.5	%		63.2	%
International-based fleet:
Deepwater vessels	28			89.9	%		86.8	%
Towing-supply/supply	207			76.8	%		74.1	%
Crew/utility	69			76.2	%		76.4	%
Offshore tugs	39			63.3	%		57.5	%
Other	8			28.8	%		35.9	%
Total	351			75.2	%		72.8	%
Worldwide fleet:
Deepwater vessels	35			91.7	%		88.8	%
Towing-supply/supply	257			74.0	%		71.7	%
Crew/utility	83			78.5	%		78.5	%
Offshore tugs	52			53.7	%		49.0	%
Other	8			28.8	%		35.9	%
Total	435	(1)		72.9	%		70.8	%
AVERAGE DAYRATES
Domestic-based fleet:
Deepwater vessels			$	20,006		$	18,401
Towing-supply/supply			$	10,545		$	8,706
Crew/utility			$	5,455		$	4,673
Offshore tugs			$	9,707		$	10,060
Total			$	10,049		$	8,606
International-based fleet:
Deepwater vessels			$	17,823		$	16,012
Towing-supply/supply			$	7,682		$	7,224
Crew/utility			$	3,541		$	3,399
Offshore tugs			$	5,735		$	5,669
Other			$	4,597		$	3,442
Total			$	7,635		$	7,162
Worldwide fleet:
Deepwater vessels			$	18,272		$	16,448
Towing-supply/supply			$	8,140		$	7,467
Crew/utility			$	4,018		$	3,716
Offshore tugs			$	6,407		$	6,440
Other			$	4,597		$	3,442
Total			$	8,078		$	7,428

(1) In addition to the 435 total owned or chartered vessels, the Company had 66 vessels withdrawn from active service and 22 joint venture and other vessels at March 31, 2006.

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Tidewater’s vessel commitments by vessel class and type as of March 31, 2006 were as follows:

	U.S. Built					International Built
Vessel Class and Type	Number of Vessels	Total Cost Commitment		Expended Through 3/31/06		Number of Vessels	Total Cost Commitment		Expended Through 3/31/06
		(in thousands)					(in thousands)
Deepwater vessels:
Platform supply vessels	3	$	51,923	$	15,094	—		—		—
Replacement fleet:
Anchor handling towing supply	—		—		—	5	$	80,841	$	32,900
Platform supply vessels	2	$	26,832	$	8,421	—		—		—
Crewboats and offshore tugs:
Crewboats – 175 foot	1	$	7,229	$	474	—		—		—
Crewboats – Water jets	—		—		—	1	$	1,086	$	895
Offshore tugs	—		—		—	1	$	7,401	$	3,187
Totals	6	$	85,984	$	23,989	7	$	89,328	$	36,982

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